Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
expect much from Crude Oil producers and future is not with the
companies producing Jet fuels but Biofuels. Also no wonder if some of
4 |! I# T0 r7 v& l( Wthese oil producer will go bankrupt or out of the business even if
* q( C9 c/ r6 r" }8 h2 rcrude prices improves. This implies also to good names such as Shell,
% D; X6 E* `) s4 EEXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
: l2 ?9 a5 ?1 C/ P8 ?4 RA year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.


There are several reasons the price of oil is decreasing in the face
' n! d' ^0 g5 u/ ^of so much news. These reasons are:
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! X$ C  S) E/ r1. New oil has been found in Canada, Montana, North & South Dakota and
in the ocean near Brazil. Each of these oil fields has more oil than
Arabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
This is the largest find in North America.
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3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.
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4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
potential per acre in some cases is astounding. Many countries are
# u8 Q: H* a( D* gracing to produce bio fuels.
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1 d5 _# A5 g8 Q2 R5. Virtually every restaurant in the US and all food processing plants
4 [& v* d& s1 n2 P9 rare now selling their used oil to bio-diesel producers. Every pork,
1 m& g' u$ I2 M( ^cattle, turkey and chicken processing plant will soon sell their fat
, w+ R. Y8 |. f) W! j4 hto bio-diesel producers. One pork processing plant in Oklahoma is
2 F0 E9 `& S( c9 h6 z/ y, D$ Lproducing 30,000 gallons of bio-diesel per day from pork fat.


6. There are 99 nuclear reactors in various stages of planning and
2 s6 C* A/ ?  w* n  ?6 o- Jconstruction around the world at this time. Several hundred more are
expected to be built in the future. Much of the energy they produce
will replace oil.
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& W9 N; i, b& K: p; `$ J# \( M+ c* \7. Every company in any form of transportaion business is replacing
& e/ f) B7 M* L) }" W# m  Uolder equipment such as trucks, airplanes, train engines, ships, etc.
with new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
equipment.


Airlines are flying airplanes with bio-fuel. They are finding the bio-
6 T( j. ]: @; pfuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
, M* \1 D7 R# F' V$ [7 L+ ocapture methane gas from landfills. This is a huge source of gas
available at very little cost or risk. The gas is displacing crude
oil.
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9 a" _) t2 ?' A. q2 ~9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
+ W1 v) V( h; U. Uoil wells.


! R' J3 ~6 q# U2 V; q10. Solar, wind and ocean energy is displacing oil as an energy
5 |) u6 C7 o: Y) r1 Y4 b/ \" osource. Three new wind turbines are being erected every day in the US.
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Each of the above by itself will not make a large difference in the
7 n4 a1 l2 p! l2 gprice of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
to control oil prices.
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. Z  p) q( }2 r$ x% U! o" z/ ]With the above scenario, I still believe that there are under
8 p, \2 R7 U& G8 i9 vperformed OIL companies and probably they are yet to get the justified
) @0 z" V& S  j. I4 Y' W0 ^" D" Bvalue .....
- {: i9 i4 P5 p/ u3 _" d: d  ^, b1 d) GIAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
0 w7 B$ F( B% {) {1 z  y* k2009 ... FYI-Only